Finding 588822 (2022-007)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-01-05

AI Summary

  • Core Issue: The Community Based Services Supervisor is the sole person handling reimbursement requests and budget monitoring, lacking necessary oversight.
  • Impacted Requirements: Accountability is compromised as more than one person should be involved in managing program finances to prevent errors and misuse of funds.
  • Recommended Follow-Up: Introduce internal controls by involving an additional staff member in the reimbursement and budget monitoring process, and ensure that tracking spreadsheets are reviewed by knowledgeable personnel.

Finding Text

Condition: The Community Based Serivces Supervisor is the only person involved with submitting reimbursement requests and monitoring the budget and expenditures for the program. A separate review of reimbursement requests is not performed. The accounting department is not involved with managing the program budgets. Criteria: More than one staff person should be involved for accountability and monitoring of the program. Expenditures used to recognize revenue in accounting should correspond to expenses reimbursed or identified for federal and state award programs. Cause: With turnover in accounting staff during the year, items were not reviewed or monitored for the program. Effect: Errors in reporting or misuse of funding could potentially go undetected due to lack of separation of functions and proper oversight. Recommendation: We recommend implementing internal controls over the reimbursement requests and budget monitoring process by involving another person prior to submitting the requests and budget monitoring process by involving another person prior to submitting the request. Additionally, spreadsheets used to track grant awards and program expenditures should be reviewed by someone with an understanding of the program such as the Behavioral Health Director or Assistant Director or accounting.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management Reporting

Other Findings in this Audit

  • 12380 2022-007
    Material Weakness Repeat
  • 12381 2022-008
    Material Weakness
  • 588823 2022-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.231 Emergency Solutions Grant Program $1.52M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $633,380
93.788 Opioid Str $630,075
93.498 Provider Relief Fund $272,008
14.267 Continuum of Care Program $225,796
93.958 Block Grants for Community Mental Health Services $151,047
84.181 Special Education-Grants for Infants and Families $71,572
93.150 Projects for Assistance in Transition From Homelessness (path) $42,363